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Pakistan, Saudi Arabia Agree To Deepen Economic And Agricultural Cooperation
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Pakistan, Saudi Arabia Agree To Deepen Economic And Agricultural Cooperation

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Pakistan and Saudi Arabia have agreed to strengthen economic and agricultural cooperation, with a Pakistani delegation of agricultural experts set to visit Riyadh soon to advance talks on expanding bilateral trade, investment and agricultural ties. Prime Minister Muhammad Shehbaz Sharif said Pakistan and Saudi Arabia should focus on converting their longstanding strategic partnership into stronger economic relations. He made the remarks during a meeting with Saudi Minister of Environment, Water and Agriculture Engineer Abdulrahman bin Abdulmohsen Al-Fadley at the Prime Minister’s House in Islamabad. The two sides discussed ways to expand Pakistani agricultural exports to Saudi Arabia and improve Pakistan’s agricultural productivity through modern technology, research and development and more efficient water management. Pakistani Agriculture Experts To Visit Riyadh According to a government press release, the upcoming visit by Pakistani agricultural experts will help advance discussions between the two countries and identify opportunities for greater cooperation. Pakistan sees Saudi Arabia as an important market for its agricultural products, while Saudi Arabia has expressed interest in strengthening collaboration in agriculture, water management and food security. The discussions also focused on improving agricultural productivity through technology and research. Better water-use efficiency was highlighted as another area where cooperation could support Pakistan’s agriculture sector. The Saudi minister reaffirmed Riyadh’s commitment to expanding cooperation with Pakistan in agriculture, water and food security. He also thanked Prime Minister Shehbaz Sharif for the hospitality extended to him and his delegation. Defence Agreement To Support Wider Partnership Prime Minister Shehbaz Sharif also highlighted the recently signed Makkah Joint Defence Agreement involving Saudi Arabia, Turkiye and Pakistan. He said the agreement had brought the three countries closer and conveyed a message of unity and peace across the region. The prime minister stressed that Pakistan and Saudi Arabia, as strategic partners, should now channel their efforts toward increasing trade and investment alongside their existing defence and diplomatic cooperation. The government has increasingly focused on strengthening economic relations with Saudi Arabia, particularly in areas that can generate investment, exports and employment opportunities. Focus On Trade, Investment And Food Security The meeting reflects a broader effort by Pakistan and Saudi Arabia to expand their partnership beyond traditional diplomatic and security relations. Agriculture remains an important area of cooperation because Pakistan has significant agricultural production capacity, while Saudi Arabia continues to focus on securing reliable food supplies and improving resource efficiency. Greater cooperation in technology, agricultural research, water management and food security could help Pakistan improve productivity while creating opportunities to increase exports to the Saudi market. The meeting was attended by several federal ministers, including Rana Tanveer Hussain, Muhammad Aurangzeb, Atta Tarar, Jam Kamal Khan, Dr Musadik Malik, Junaid Anwar Chaudhry, Dr Syed Tauqir Shah and Bilal Azhar Kiyani. Special Assistant to the Prime Minister Tariq Fatemi and senior government officials also participated.

NBP Reports PKR 32.4 Billion Profit In First Half Of 2026
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NBP Reports PKR 32.4 Billion Profit In First Half Of 2026

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National Bank of Pakistan (NBP) delivered a resilient financial performance during the first half of 2026, reporting a Profit After Tax (PAT) of PKR 32.4 billion despite volatility in interest rates and challenging conditions across the banking sector. The bank’s Profit Before Tax stood at PKR 67.3 billion, while earnings per share reached PKR 15.23 for the six months ended June 30, 2026. Investments Support NBP’s Interest Income NBP’s investment portfolio remained a key contributor to its earnings during the period. Investments grew 15.1% during the first half to reach PKR 5.67 trillion. The bank said its stronger funding mix, supported by growth in low-cost current and savings accounts (CASA), helped reduce its overall cost of funds and cushion pressure from lower asset yields. Gross interest income reached PKR 361.7 billion during 1H2026. Non-mark-up income also improved, increasing 3.8% year-on-year to PKR 27.6 billion. Foreign exchange income rose to PKR 5.4 billion from PKR 3.5 billion, while dividend income increased 30% to PKR 4.1 billion. Strong Deposit Base Supports Liquidity NBP maintained a strong deposit and liquidity position during the first half of the year. Total deposits stood at PKR 4.2 trillion as of June 30. Current deposits accounted for PKR 2.07 trillion, representing 49.2% of total deposits. The bank’s overall CASA base reached PKR 3.53 trillion, lifting the CASA ratio to approximately 85%, compared with 80.7% at the end of 2025. The bank reported a Liquidity Coverage Ratio of 198% and a Net Stable Funding Ratio of 152%, both well above the regulatory minimum of 100%. Islamic Financing Continues To Grow While gross advances declined 2.4% to PKR 1.58 trillion from PKR 1.61 trillion at the end of 2025, NBP attributed the reduction mainly to seasonal factors affecting its Commercial and SME segments. Islamic financing, however, continued to expand strongly. It increased 27% during the first half to reach PKR 312.8 billion. The growth reflects the bank’s continued expansion of its Islamic banking business while conventional advances remained affected by seasonal trends. Expenses Rise With Digital Investment NBP’s operating expenses increased approximately 11% year-on-year to PKR 65.5 billion. According to the bank, the increase was primarily linked to investments in digital capabilities and technology infrastructure. These investments are intended to strengthen operational capacity, resilience and scalability over the longer term. Risk management remained another positive area. Recoveries against non-performing loans and credit loss allowances resulted in a net reversal of PKR 5.3 billion during 1H2026, compared with a charge of PKR 4.8 billion in the same period last year. Specific NPL provision coverage stood at 93% under applicable State Bank of Pakistan regulations. NBP Maintains Strong Capital Position The bank’s total assets increased 10.9% during the first half of 2026, reaching PKR 7.8 trillion compared with PKR 7.07 trillion at the end of December 2025. Despite a significant dividend payout affecting eligible capital, NBP continued to maintain a strong capital position. Risk-weighted assets increased marginally by 1% to PKR 2.11 trillion. The bank’s Total Capital Adequacy Ratio stood at 22.12%, while its Tier-1 Capital Adequacy Ratio was 16.79%. The leverage ratio stood at 3.62%, with the bank saying other financial soundness indicators also remained strong. Abdul Wahid Sethi Assumes Acting CEO Charge The Federal Government has assigned Abdul Wahid Sethi, NBP’s SEVP and CFO, the additional acting charge of President and CEO. Sethi will hold the acting position for three months or until a regular President and CEO is appointed, whichever comes earlier. The bank said the new interim leadership is expected to support operational excellence, its transformation agenda and value creation for customers, shareholders and other stakeholders. NBP Expects Credit Demand To Recover Sethi expects the operating environment to improve during the second half of 2026, supported by easing geopolitical tensions, improving business confidence and a gradual recovery in economic activity. The bank expects these developments to encourage a revival in credit demand, particularly within the Commercial and SME segments. With strong liquidity, a sizeable low-cost deposit base, robust capital and disciplined risk management, NBP believes it is well positioned to benefit from an improvement in economic activity. The bank plans to pursue risk-calibrated asset growth and deepen customer relationships, while stronger advances and improving business conditions are expected to provide additional momentum through the remainder of the year.

SPI Inflation Rises 0.05% Weekly As LPG, Diesel And Petrol Prices Increase
Business

SPI Inflation Rises 0.05% Weekly As LPG, Diesel And Petrol Prices Increase

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Pakistan’s short-term inflation, measured by the Sensitive Price Indicator (SPI), increased by 0.05% during the week ended August 27, 2026, according to data released by the Pakistan Bureau of Statistics (PBS). The latest SPI inflation data showed mixed price movements for essential commodities. Prices of LPG, diesel, electricity, petrol and several food items increased during the week, while significant declines were recorded in tomatoes, chicken, onions and bananas. On a year-on-year basis, the SPI increased by 9.04%, indicating continued pressure on household budgets despite weekly price movements remaining relatively limited. LPG, Diesel And Petrol Prices Rise The largest weekly increase was recorded in the price of LPG, which rose by 3.46%. Diesel prices increased by 2.44%, while electricity charges for the first quarter rose by 2.06%. Petrol prices increased by 1.71% during the week. Other commodities that became more expensive included pulse gram, wheat flour, eggs, mustard oil, pulse masoor, prepared tea, pulse mash and beef. Pulse gram recorded a weekly increase of 0.88%, while wheat flour rose by 0.39%. Egg prices increased by 0.34%, and mustard oil and pulse masoor prices went up by 0.30% each. Tomato Prices Fall 18.65% Several food items recorded notable price declines during the week. Tomato prices registered the biggest decrease, falling by 18.65%. Chicken prices dropped by 4.41%, followed by onions at 2.87% and bananas at 2.80%. Garlic prices declined by 1.02%, while IRRI-6/9 rice fell by 0.42%. Basmati broken rice prices decreased by 0.41%, while potatoes became 0.39% cheaper. Out of the 51 items monitored by the PBS, prices of 20 items increased, 11 decreased and 20 remained unchanged during the week. Annual Inflation Shows Sharp Price Increases The annual SPI data showed considerably larger price increases in several essential commodities. Onions recorded the highest year-on-year increase at 125.86%, followed by LPG at 55.66% and wheat flour at 45.28%. Tomato prices were 36.69% higher than a year earlier, while diesel increased by 36.33%. Petrol prices rose by 29.84% year-on-year, while electricity charges for the first quarter increased by 25.24%. Other significant annual increases were recorded in chilli powder, mutton, bananas, beef and plain bread. However, several commodities became cheaper compared with the same period last year. Potato prices declined by 31.33%, chicken by 23.87%, sugar by 19.33% and eggs by 17.97%. Fertiliser And Cement Prices The average price of Sona Urea remained unchanged at Rs4,684 per 50kg bag during the week. However, its price was 6.81% higher compared with the same period last year. Meanwhile, the average price of cement stood at Rs1,549 per 50kg bag, showing a weekly decline of 0.59%. Despite the recent decrease, cement remained 9.88% more expensive than a year earlier. The SPI tracks prices of 51 essential commodities across 50 markets in 17 cities. The weekly indicator provides policymakers with a near-real-time assessment of price movements and short-term inflationary pressures across the country.

Systems Limited Targets AI Led Growth With Acquisitions and Global Expansion
Business

Systems Limited Targets AI Led Growth With Acquisitions and Global Expansion

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Systems Limited is positioning artificial intelligence, acquisitions and international expansion at the center of its next growth phase as enterprise technology spending increasingly shifts toward AI driven transformation. The Pakistan listed technology company says a healthy backlog, stronger enterprise demand and recent acquisitions are creating a foundation for continued expansion. However, the bigger question for investors is whether Systems Limited can convert its aggressive international expansion and AI ambitions into sustainable margins and stronger shareholder returns. Systems Limited Sees AI Becoming a Major Growth Engine Systems Limited says AI is no longer simply an emerging technology opportunity. Its customers are increasingly looking to use AI to improve productivity, automate operations and create new revenue streams. The company has been embedding AI into its own internal processes as well as client solutions. It is also expanding the use of AI tools across its workforce to improve productivity and delivery efficiency. Management believes these productivity gains could result in larger technology deals. With more than 300 customers globally, Systems Limited sees considerable room to expand existing relationships through cross selling and upselling. The company’s focus on agentic AI is particularly significant. Businesses are increasingly exploring autonomous systems capable of performing tasks with limited human intervention. This could create new demand for consulting, software development, cloud infrastructure and digital transformation services. Yet there is a potential risk. AI can increase productivity, but it can also reduce the amount of traditional technology work required for certain projects. Systems Limited will therefore need to prove that higher productivity translates into larger and more profitable contracts rather than simply reducing billable manpower requirements. Confiz Acquisition Opens North American Opportunity The acquisition of Confiz has strengthened Systems Limited’s access to North American enterprise customers. Management says Confiz and BAT Shared Services Center both delivered healthy revenue growth during the second quarter. Systems Limited now expects cross selling and upselling across the acquired customer bases to create additional value. The Confiz transaction could become particularly important because it gives Systems Limited greater exposure to large enterprise clients in the United States and Canada. Management expects integration synergies to begin emerging during the second half of 2026. If successful, the acquisition could reduce the company’s geographical concentration and strengthen its international revenue base. However, acquisitions also bring integration risks. Revenue growth alone does not guarantee that a deal will create value. Systems Limited will need to demonstrate that expected synergies translate into improved margins and cash generation. Europe and APAC Become New Expansion Fronts Systems Limited is also expanding its footprint in the United Kingdom and Europe. The company has established a UK entity and appointed regional leadership, with plans to use Britain as a platform for further expansion into continental Europe. Meanwhile, investments in Vietnam, Malaysia and Indonesia are beginning to generate results in the Asia Pacific region. Stronger channel partnerships and a growing backlog are supporting expansion, while the company is evaluating additional delivery capacity in Malaysia. The company has also expanded its delivery network through an operational center in Egypt and a development center in Malaysia, while planning another center in Jordan. This strategy could improve access to international talent and provide greater operational resilience. But it also means Systems Limited is increasing its cost base across multiple markets at a time when global technology spending remains highly competitive. Pakistan Business Turns Profitable One of the more important developments is taking place in Systems Limited’s domestic business. Management says the Pakistan operation has moved from negative profitability to positive profitability. The company expects further improvement as its backlog and pipeline strengthen. Systems Limited also wants domestic margins to move closer to those achieved in its international operations. This turnaround could provide an important earnings boost. At the same time, the company faces the challenge of managing wage inflation, operating costs and currency movements while competing in a market where pricing pressure can remain intense. Systems Limited Delivers Strong First Half Growth The company’s financial performance provides momentum for its expansion strategy. For the six months ended June 30, 2026, consolidated revenue increased 35.3 percent year on year to Rs49.72 billion. Consolidated profit after tax rose 17.4 percent to Rs6.05 billion. The numbers show strong revenue growth, but the slower pace of profit growth deserves attention. Revenue expanded by more than one third, while profit increased by less than one fifth. That gap suggests investors should look beyond headline revenue growth and closely monitor margins, integration costs, foreign exchange effects and the profitability of newly acquired businesses. Systems Limited said its results reflected strong organic and inorganic growth, improved efficiency and optimization despite wage and fuel cost inflation and the impact of rupee appreciation on its predominantly foreign currency revenue base. More Acquisitions Could Reshape Systems Limited Systems Limited continues to evaluate merger and acquisition opportunities, particularly in Western markets. The strategy is designed to strengthen its presence in the United States and Europe, diversify its customer portfolio and reduce geographical concentration risks. If executed successfully, another acquisition could accelerate Systems Limited’s transformation from a Pakistan based IT exporter into a broader global technology services company. But investors should remain cautious about an acquisition led growth strategy. The ultimate test will not be how many companies Systems Limited acquires, but whether those businesses generate sustainable revenue, stronger margins and cash flow after integration. Systems Limited Faces a Bigger Test Ahead Systems Limited enters the second half of 2026 with strong revenue momentum, a sizeable backlog, expanding international operations and growing AI demand. The opportunity is substantial. Enterprise customers are increasing technology spending, AI is creating new service categories and Systems Limited’s international footprint is becoming increasingly diversified. But expectations are also rising. The company must now demonstrate that acquisitions can produce genuine synergies, international expansion can generate attractive returns and AI driven productivity can translate into profitable growth. For investors, the next phase of Systems Limited’s story may therefore be less about whether the company can grow and more about how profitably and efficiently it can

Export Facilitation Scheme Faces Misuse Concerns as PCDMA Seeks Tighter Controls
Business

Export Facilitation Scheme Faces Misuse Concerns as PCDMA Seeks Tighter Controls

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The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has called for stronger controls on the Export Facilitation Scheme (EFS), arguing that growing imports under the scheme are creating tax disparities and need closer monitoring. The issue was raised during PCDMA’s annual dinner, where Senate Standing Committee on Finance & Revenue Chairman Senator Saleem Mandviwalla assured the chemicals and dyes trade that its taxation, EFS, import and e-invoicing concerns would be taken up at the parliamentary level. PCDMA Calls for Action on EFS PCDMA Chairman Salim Valimuhammad said imports under the EFS had increased by more than 70 percent without a similar rise in exports. He proposed several measures to prevent potential misuse, including linking EFS imports with actual export proceeds or letters of credit. The association also suggested imposing a 40 percent limit and conducting annual audits based on an industry’s three-year consumption and export records. According to PCDMA, stronger monitoring is necessary to ensure that the scheme continues supporting genuine export-oriented activity rather than creating an uneven tax environment. Tax Disparity Remains a Major Concern The association also called for the removal of the 3 percent additional sales tax and demanded equal treatment for commercial importers and industrial businesses. PCDMA argues that the chemicals and dyes sector plays an important role in supplying textile, leather, pharmaceutical and other export-focused industries. Any tax or import policy affecting the sector can therefore have wider implications for manufacturing and exports. Parliament to Review Business Concerns Senator Saleem Mandviwalla said the Senate finance committee would invite the Federal Board of Revenue, Ministry of Finance and other relevant departments to examine the concerns raised by the business community. He also urged trade associations and chambers to maintain regular engagement with policymakers instead of waiting until the federal budget period to raise their issues. According to Mandviwalla, policymakers must balance business demands with the government’s revenue requirements and commitments under the IMF programme. E-Invoicing Issues Also on the Agenda Alongside EFS and taxation, the chemicals and dyes trade raised concerns over the implementation of e-invoicing. The association called for consultations between the business community, FBR, Finance Ministry and Senate to address practical difficulties and improve the system. The upcoming discussions could determine whether changes are made to EFS monitoring, tax treatment and e-invoicing requirements. For the chemicals and dyes sector, the priority is to ensure that tax and import policies support legitimate businesses without creating unfair advantages or additional costs.

Pakistan Targets $6 Billion Refinery Investment Under Brownfield Upgrade Policy
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Pakistan Targets $6 Billion Refinery Investment Under Brownfield Upgrade Policy

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Pakistan is moving closer to attracting around $6 billion in investment in its oil refining sector as the country’s five major refineries prepare to sign brownfield upgradation agreements early next month. The agreements are expected to mark the beginning of a major modernisation programme aimed at improving domestic fuel production, reducing imports and strengthening Pakistan’s energy security. Refineries Ready to Sign Upgrade Agreements Petroleum Minister Ali Pervaiz Malik recently met the management of PARCO, Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL) in Karachi. The refinery managements reportedly confirmed that preparations are complete and that they are ready to sign agreements under the Brownfield Refinery Upgradation Policy. The Petroleum Division said the agreements would provide the first major step toward implementing the policy and upgrading existing refining facilities. Focus on Euro-V Fuel Production A key objective of the programme is to enable local refineries to produce Euro-V compliant petrol and diesel. Increasing domestic production of higher-quality fuels could help Pakistan reduce its dependence on imported petroleum products. It may also strengthen supply chains and reduce exposure to international fuel price and supply disruptions. The government has also emphasised maintaining uninterrupted fuel supplies, particularly after the challenges created by disruptions around the Strait of Hormuz. Modernising Pakistan’s Refining Sector The brownfield policy follows amendments to the 2023 refining policy approved by the Cabinet Committee on Energy in July. The government considers the modernisation of existing refineries an important national priority. Planned upgrades are expected to increase petrol and diesel production, reduce furnace oil output and bring refinery operations closer to international environmental standards. For the industry, modernisation is increasingly important as global fuel specifications become more demanding and Pakistan seeks to improve the efficiency of its domestic energy infrastructure. Oil City Proposal Adds to Energy Strategy Alongside refinery upgrades, officials have also discussed developing an Oil City in Hub as a potential strategic storage and energy terminal. The proposed facility could strengthen Pakistan’s petroleum storage capacity and improve the country’s ability to manage fuel supplies during periods of international market disruption. Together, refinery modernisation and improved storage infrastructure could form a broader strategy to make Pakistan’s petroleum supply chain more resilient. $6 Billion Investment Could Reshape the Sector The proposed agreements represent a significant investment opportunity for Pakistan’s refining industry. If implemented effectively, the programme could increase local fuel production, reduce the import bill and improve energy security. However, the scale of the investment will ultimately depend on timely implementation, financing arrangements and the ability of refineries to complete upgrades within agreed timelines. The government has pledged continued cooperation with refinery operators to prevent delays and move the programme forward. For Pakistan, the brownfield initiative offers an opportunity to modernise an ageing refining base while reducing dependence on imported fuels. The real test will be whether the planned investment translates into higher production, cleaner fuels and measurable savings for the economy.

Jahangir Siddiqui & Co. Profit Falls 19% As Investment Gains Fade
Business

Jahangir Siddiqui & Co. Profit Falls 19% As Investment Gains Fade

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Jahangir Siddiqui & Co. Ltd. (PSX: JSCL) reported a 19% decline in standalone profit after tax to Rs262.5 million for the half year ended June 30, 2026, compared with Rs325.3 million a year earlier. The second quarter was particularly weak, with standalone profit falling to just Rs2.1 million from Rs52.5 million. Earnings per share for the quarter stood at only one paisa. The company’s board approved the financial statements but did not recommend a cash dividend, bonus shares or rights issue for ordinary shareholders. Investment Gains Lose Momentum JSCL’s standalone income declined to Rs624 million from Rs708 million. Return on investments remained the company’s largest income source at Rs606 million, compared with Rs621 million a year earlier. However, gains from the sale of investments dropped sharply to Rs3.7 million from Rs57.1 million. The company also did not repeat the previous year’s Rs28.6 million fair-value gain, removing another source of support for earnings. Lower Costs Fail To Offset Income Decline Operating expenses and finance costs decreased during the period, but the savings were not enough to prevent a decline in profitability. Profit before tax fell to Rs391 million from Rs437 million, while basic earnings per share declined to Rs0.29 from Rs0.36. The parent company’s cash position also weakened. Cash fell to Rs14 million from Rs59 million, while short-term investments declined to Rs2.66 billion from Rs5 billion. Group Profit Also Declines At the consolidated level, JSCL reported income of Rs77.36 billion, down from Rs91.47 billion. Return on investments fell to Rs36.25 billion from Rs48.55 billion, while gains from the sale of investments plunged to Rs290 million from Rs4.07 billion. Fair-value remeasurement also turned into a Rs21 million loss, compared with a Rs634 million gain in the previous year. Some areas performed better. Fee, commission and brokerage income increased to Rs6.09 billion, while income from loans and placements rose to Rs32.42 billion. A Rs2.75 billion impairment reversal also supported the group’s half-year results. Stronger Second Quarter At Group Level Despite the weaker half-year performance, the group delivered a stronger second quarter. Consolidated profit after tax increased to Rs4.03 billion from Rs2.85 billion, while quarterly EPS rose to Rs2.34 from Rs2.05. For the full half year, however, group profit after tax declined 11% to Rs5.48 billion, compared with Rs6.17 billion a year earlier. Profit attributable to equity holders of the parent was Rs3.44 billion against Rs3.50 billion. Preference Capital Paid Down The parent company significantly reduced its amount payable to preference shareholders, from Rs1.94 billion to Rs0.7 million. The group’s cash-flow statement shows approximately Rs1.83 billion paid to preference shareholders during the period. Dividends during the period were largely distributed to non-controlling interests, amounting to around Rs345 million. JS Bank Remains A Key Group Driver JS Bank remains an important operating component of the group and had already reported stronger standalone earnings for the same period. Its contribution was reflected in higher placements and fee income, as well as the impairment reversal. However, these improvements were less visible in JSCL’s standalone results, which remain heavily influenced by investment income, yields and gains from asset sales. No Dividend For Ordinary Shareholders JSCL’s latest results once again provide no payout for ordinary shareholders, despite the group remaining profitable. The combination of weaker standalone earnings, reduced investment-sale gains and a lack of dividend distribution leaves investors focused on whether the group’s banking operations can generate enough sustainable growth to offset the quieter performance of the parent investment company.

Standard Chartered Pakistan Profit Drops 29% As Lower Rates Pressure Earnings
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Standard Chartered Pakistan Profit Drops 29% As Lower Rates Pressure Earnings

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Standard Chartered Bank (Pakistan) Limited reported a 29% decline in profit after tax to Rs11.78 billion for the half year ended June 30, 2026, compared with Rs16.56 billion in the same period last year. Profit before tax fell to Rs24.38 billion, while earnings per share declined to Rs3.04 from Rs4.28. Second-quarter profit also dropped to Rs6.18 billion from Rs8.58 billion. Despite weaker earnings, the bank declared an interim cash dividend of Rs3 per share, maintaining the same rupee payout as last year. Lower Interest Rates Hit Bank Margins The bank’s revenue declined to Rs34.81 billion from Rs44.40 billion, with lower interest rates creating significant pressure on earnings. Net mark-up income fell to Rs26.30 billion, compared with Rs32.47 billion a year earlier. Mark-up earned also declined, although the lower cost of funds provided some relief. Non-interest income was mixed. Fee and commission income dropped to Rs3.06 billion, while gains on securities turned into a Rs575 million loss. Foreign-exchange income, however, increased to Rs5.31 billion. Cost Control Provides Some Support Operating expenses declined 4% to Rs11.01 billion, showing that the bank has taken steps to control costs. The bank also recorded a net release of Rs1.11 billion in credit-loss provisions, compared with a Rs587 million release a year earlier. However, these recoveries could not fully offset the decline in core revenue. Advances And Deposits Continue To Grow The bank’s balance sheet showed stronger lending activity during the period. Net advances increased 15% from December to Rs245.5 billion, while deposits rose 3% to Rs671.3 billion. A notable improvement came in the deposit mix, with current accounts accounting for 57% of total deposits, up from 48% in 2024. This shift provides the bank with a stronger low-cost funding base. Investment Portfolio Shrinks While lending increased, the bank significantly reduced its investment portfolio. Investments declined to Rs292.1 billion from Rs478.4 billion, while lending to financial institutions jumped from Rs12.5 billion to Rs166.6 billion. The changes suggest a substantial reshaping of the bank’s balance sheet rather than straightforward expansion. Leadership Change At Standard Chartered Pakistan The results also come during a leadership transition. Rehan Shaikh stepped down as CEO after six years, with Adil Salahuddin taking over following regulatory clearance. The bank continues to maintain strong credit ratings, but its latest earnings show the challenge of sustaining profitability in a lower-interest-rate environment. Dividend Maintained Despite Profit Decline Standard Chartered Pakistan’s decision to maintain its Rs3 per-share interim dividend keeps shareholder returns relatively stable despite the 29% decline in half-year profit. The results highlight a mixed picture: stronger advances and a healthier deposit mix provide positives, while lower interest income, weaker fee revenue and securities losses remain key pressures.

## Export Facilitation Scheme Misuse Sparks Calls For Stricter Controls **KARACHI:** The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has called for tighter controls on the **Export Facilitation Scheme (EFS)**, claiming that imports under the scheme have risen sharply without a matching increase in exports. The association wants the government to address tax disparities between commercial importers and industrial businesses while also resolving ongoing e-invoicing issues. ## PCDMA Proposes Tighter EFS Monitoring PCDMA Chairman Salim Valimuhammad said EFS imports have increased by more than **70%**, despite exports not growing at the same pace. To prevent potential misuse, the association has proposed: * Linking EFS imports with actual foreign remittances or letters of credit * Applying a **40% limit** on EFS imports * Conducting annual audits using three-year consumption and export data The association argues that stronger monitoring would help ensure that the scheme serves genuine export-oriented businesses rather than creating distortions in the tax system. ## Business Community Seeks Tax Parity PCDMA also called for the withdrawal of the **3% additional sales tax** and a level playing field between commercial importers and industrial concerns. The chemicals and dyes sector supplies key inputs to industries including textiles, leather and pharmaceuticals, making tax and import policies particularly important for businesses across the wider export supply chain. ## Senate Committee To Review Industry Concerns Chairman Senate Standing Committee on Finance and Revenue Senator **Saleem Mandviwalla** assured the business community that its concerns would be taken up at the parliamentary level. He said the Senate committee would invite the **Federal Board of Revenue, Ministry of Finance and other relevant departments** to discuss EFS, taxation and e-invoicing concerns. Mandviwalla also urged trade bodies to engage with policymakers throughout the year instead of raising major issues only shortly before the federal budget. ## Balancing Business Relief And Fiscal Targets The government faces the challenge of supporting businesses while meeting fiscal targets and commitments under the IMF programme. Any changes to EFS or taxation could affect different groups of businesses in different ways. The PCDMA wants policymakers to address these differences while ensuring that incentives remain linked to genuine export activity. The association’s proposals now put greater scrutiny on how EFS imports are monitored and whether the scheme is delivering the export growth it was designed to support. **SEO Optimized Keywords:** Export Facilitation Scheme Pakistan, EFS misuse Pakistan, PCDMA, chemicals and dyes industry Pakistan, EFS imports, tax disparity Pakistan, commercial importers Pakistan, additional sales tax, e-invoicing Pakistan, export policy Pakistan **Focus Key Phrase:** Export Facilitation Scheme Pakistan **Meta Description:** PCDMA urges Pakistan to tighten Export Facilitation Scheme controls, address tax disparities and link EFS imports more closely with genuine export activity.
Business

Export Facilitation Scheme Misuse Sparks Calls For Stricter Controls

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KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has called for tighter controls on the Export Facilitation Scheme (EFS), claiming that imports under the scheme have risen sharply without a matching increase in exports. The association wants the government to address tax disparities between commercial importers and industrial businesses while also resolving ongoing e-invoicing issues. PCDMA Proposes Tighter EFS Monitoring PCDMA Chairman Salim Valimuhammad said EFS imports have increased by more than 70%, despite exports not growing at the same pace. To prevent potential misuse, the association has proposed: The association argues that stronger monitoring would help ensure that the scheme serves genuine export-oriented businesses rather than creating distortions in the tax system. Business Community Seeks Tax Parity PCDMA also called for the withdrawal of the 3% additional sales tax and a level playing field between commercial importers and industrial concerns. The chemicals and dyes sector supplies key inputs to industries including textiles, leather and pharmaceuticals, making tax and import policies particularly important for businesses across the wider export supply chain. Senate Committee To Review Industry Concerns Chairman Senate Standing Committee on Finance and Revenue Senator Saleem Mandviwalla assured the business community that its concerns would be taken up at the parliamentary level. He said the Senate committee would invite the Federal Board of Revenue, Ministry of Finance and other relevant departments to discuss EFS, taxation and e-invoicing concerns. Mandviwalla also urged trade bodies to engage with policymakers throughout the year instead of raising major issues only shortly before the federal budget. Balancing Business Relief And Fiscal Targets The government faces the challenge of supporting businesses while meeting fiscal targets and commitments under the IMF programme. Any changes to EFS or taxation could affect different groups of businesses in different ways. The PCDMA wants policymakers to address these differences while ensuring that incentives remain linked to genuine export activity. The association’s proposals now put greater scrutiny on how EFS imports are monitored and whether the scheme is delivering the export growth it was designed to support.

Wafi Energy Reports Rs641 Million Q2 Loss Despite Strong Half-Year Profit
Business

Wafi Energy Reports Rs641 Million Q2 Loss Despite Strong Half-Year Profit

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Islamabad, August 27, 2026: Wafi Energy Pakistan Limited reported a loss after tax of PKR 641 million in the second quarter, reversing the strong performance recorded in the first three months of the year. Despite the quarterly setback, the company’s half-year profit after tax increased to PKR 1.523 billion, compared with PKR 1.260 billion during the same period last year. Global Disruptions Pressure Second-Quarter Results Wafi Energy attributed the quarterly loss to disruptions along global energy routes and significant volatility in input costs. The company said the challenging market environment affected its April-June performance, although it continued supplying fuel and lubricants to customers throughout the period. CEO Zubair Shaikh described the first half as a demanding period for the industry, saying the company remained focused on disciplined investment and maintaining supply security. Wafi Energy Expands Shell Retail Network Despite the Q2 loss, Wafi Energy continued expanding its retail and consumer network in Pakistan. During the period, the company added: The company also reported growth in consumer and industrial lubricants, supported by new products and outreach programmes targeting mechanics. New Fuel Storage Strengthens Northern Supply Wafi Energy has also expanded its storage capacity with the opening of a 7.4-million-litre motor gasoline tank at the Tarru Jabba terminal in Nowshera, Khyber Pakhtunkhwa. The additional storage capacity is intended to position fuel closer to demand in northern Pakistan and support the company’s planned expansion of its Shell retail network in the region. Long-Term Investment Strategy Continues While the second-quarter loss highlights the impact of global energy-market volatility on fuel businesses, Wafi Energy says it remains committed to investing in Pakistan. The company’s continued expansion of retail outlets, EV charging infrastructure, lubricant products and fuel storage indicates a strategy focused on network growth and supply resilience rather than short-term quarterly performance alone. The key challenge ahead will be managing international energy-price volatility and supply disruptions while maintaining profitability and funding continued investment.

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